The NZ Business Council for Sustainable Development believes the Green Party is being short-sighted by dismissing clean coal research and development. Business Council CEO Peter Neilson says while the Greens’ concern over the environment and climate change is understandable, if NZ wants a post-Kyoto agreement beyond 2012 it needs to recognise coal will be part of the energy mix for the foreseeable future. Neilson adds, “If we can find a way of capturing and storing coal emissions, then we open up the option to use 400 years’ worth of coal supply in this country.”

He notes the coal industry is worth more than $680m a year in sales, employs more than 1200 people directly, earns valuable export income and is an essential fuel for many industries, including dairy, timber, steel and processing. Neilson notes most major emitting countries such as China, India, the US, South Africa and Aust rely heavily on coal. He adds, “When you think about it Europe, America and NZ got rich on coal. You can’t deny other countries their use of the fuel. What we can do is help make sure clean coal technology is developed, and coal emissions face a price around the world.”

Neilson argues putting a price on coal emissions through the trading scheme will send a strong enough signal to coal users about lowering emissions, or paying for them. He believes the emphasis should be on delivering commercially-viable clean coal technology in the next 10 years. Neilson notes clean coal technology, stripping more than 95% of CO2 from a coal-fired power plant’s emissions, is now being trialled commercially in Norway by Sargas. It costs about $US20/t, which is below the current forward futures contract price for emission credits. He believes restricting research on clean coal technology would be “an unfortunate backward step” compared with the Greens’ recent positives efforts to work with business.

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